Luxton Announces Successful Tenderers For Auckland Area Health BoardLand Information
Hon John Luxton, Minister in Charge of Land Information New Zealand, today announced that the Auckland Area Health Board Leaseholders Association had been successful with their bid of $5 million for the freehold of 31 Crown leases in prime Auckland suburbs.
"After 5 years of negotiations between the Crown and the Leaseholders Association, a transparent and contestable tender process to dispose of the leases was chosen to maximise the return to the Crown. This produced a good result for both the Crown and the individual leaseholders," Mr Luxton said.
The freehold interest in these former Auckland Area Health Board leasehold properties was recently offered for sale in two lots by tender by Colliers Jardine, including leases in the Epsom, One Tree Hill, Royal Oak and Greenlane areas of Auckland.
"The Leaseholders Association 's bid on behalf of its individual members was the highest and best tender received on the day.
"The second lot, which includes the ground leases for the Quality Hotel, Logan Park, in Campbell Road and a Mobil Service Station was bought by Tram (JVB) Limited for $2 million.
"The opportunity to purchase a substantial number of perpetually renewable leases attracted a great deal of interest in the real estate community and from a large number of private investors. During a five week marketing campaign more than 100 individuals and investment companies picked up tender documents and investment reports prepared by Colliers Jardine. At the closing date 16 tenders were received," Mr Luxton said.
The properties are from a much larger estate dating back to the 1890's, the rents from which endowed the former Auckland Hospital Board. The leases were perpetually renewable but the lessees had no automatic right of freehold. When the Auckland Area Health Board was abolished in 1993, the administration of its remaining Endowment Leases passed to the Department of Survey and Land Information, now Land Information New Zealand. 76 leases were still current but as a result of the Crown's policy to provide opportunities for leaseholders to freehold their properties, 39 were sold to the leaseholders. The remaining 37 leases were put up for sale by tender in two lots. One lot included all the leasehold properties that the members of the Leaseholders Association had an interest in and the other was the balance.
" I am pleased that we have achieved a good result for parties involved," Mr Luxton concluded.